PAYPALHOLDINGS,INC.2015EQUITYINCENTIVEAWARDPLAN(MARKED) TheCommitteeshalldeterminethetimeperiod,includingthetimeperiodfollowingaTerminationofService,during whichtheParticipanthastherighttoexercisethevestedOptions,whichtimeperiodmaynotextendbeyondtheterm of the Option. Except as limited by the requirementsof Section 409A or Section 422 of the Code and regulationsand rulings thereunder,the CommitteemayextendthetermofanyoutstandingOption,andmayextendthetimeperiod duringwhichvestedOptionsmaybeexercised,inconnectionwithanyTerminationofServiceoftheParticipant,and mayamendanyothertermorconditionofsuchOptionrelatingtosuchaTerminationofService.TheCommitteeshall also determinetheperformanceorotherconditions,ifany,thatmustbesatisfiedbeforeallorpartofanOptionmaybe exercised. (c) Evidenceof Grant. All Options shall be evidencedby an AwardAgreementbetweentheCompanyandthe Participant. The Award Agreementshall includesuchadditionalprovisionsasmaybespecifiedbytheCommittee. 5.2 Incentive Stock Options. IncentiveStock Optionsshall be grantedonly to Employeesand the termsof any Incentive StockOptionsgrantedpursuanttothePlan,inadditiontotherequirementsofSection5.1,mustcomplywiththeprovisions of this Section 5.2. (a) Expiration. Subject to Section 5.2(c), an Incentive Stock Option shall expire and may not be exercised to any extent byanyoneafterthefirsttooccurofthefollowingevents: (i) Ten years from the date it is granted, unless an earlier time is set in the Award Agreement; (ii) Three months after the Participants termination of employment as an Employee; and (iii) One year after the date of the Participants termination of employment or service on account of Disability or death.UpontheParticipantsDisabilityor death,anyIncentiveStockOptionsexercisableattheParticipants Disability or death may be exercisedby the Participantslegal representativeor representatives,by the person or personsentitledtodosopursuanttotheParticipantslastwillandtestament,or,iftheParticipantfailstomake testamentarydispositionof suchIncentiveStockOptionordiesintestate,bythepersonorpersonsentitledto receivetheIncentiveStockOptionpursuanttotheapplicablelawsofdescentanddistribution. (b) Dollar Limitation. The aggregate Fair Market Value (determinedas of the time the Option is granted) of all shares of StockwithrespecttowhichIncentiveStockOptionsarefirstexercisablebyaParticipantinanycalendaryearmaynot exceed$100,000orsuchotherlimitationasimposedbySection422(d)oftheCode,oranysuccessorprovision.Tothe extentthat IncentiveStockOptionsarefirstexercisablebyaParticipantin excessof suchlimitation,theexcessshallbe consideredNon-QualifiedStockOptions. (c) Ten PercentOwners.AnIncentiveStockOptionshallbegrantedtoanyindividualwho,atthedateofgrant,owns stockpossessingmorethantenpercentofthetotalcombinedvotingpowerofallclassesofStockoftheCompany only if such Option is granted at a price that is not less than 110% of Fair Market Value on the date of grant (or the date theOptionismodified,extendedorrenewedforpurposesofSection424(h)oftheCode)andtheOptionisexercisable for no more than five years from the date of grant. (d) Notice of Disposition. The Participant shall give the Company prompt notice of any disposition of shares of Stock acquiredbyexerciseofanIncentiveStockOptionwithin(i)twoyearsfromthedateofgrantofsuchIncentiveStock Optionor(ii) one year after the transfer of such shares of Stock to the Participant. (e) Right to Exercise. During a Participants lifetime, an Incentive Stock Option may be exercised only by the Participant. (f) Failure to Meet Requirements.Any Option (or portion thereof) purportedto be an IncentiveStock Option, which, for anyreason,fails to meet the requirementsof Section422of theCodeshallbeconsideredaNon-QualifiedStock Option. 5.3 Substitution of Stock AppreciationRights. Subject to Section 9.8, the Committee may provide in the Award Agreement evidencingthegrantofanOptionthattheCommittee,initssolediscretion,shallhavetorighttosubstituteaStock AppreciationRightforsuchOptionatanytimepriortooruponexerciseofsuchOption;provided,thatsuchStock AppreciationRightshallbeexercisablewithrespecttothesamenumberofsharesofStockforwhichsuchsubstituted Optionwouldhavebeenexercisable. 5.4 Substitute Awards.Notwithstandingtheforegoingprovisionsof thisArticle5 to the contrary,in the case of an Option that is a Substitute Award, the exercise price per share of the shares subject to such Option may be less than the Fair MarketValuepershareonthedateofgrant,provided,thattheexcessof:(a)theaggregateFairMarketValue(asofthedate suchSubstituteAwardisgranted)ofthesharessubjecttotheSubstituteAward,over(b)theaggregateexerciseprice thereof doesnotexceedtheexcessof:(x)theaggregatefairmarketvalue(asofthetimeimmediatelyprecedingthe transactiongiving rise to the Substitute Award, such fair market value to be determinedby the Committee)of the shares of thepredecessorentitythatweresubjecttothegrantassumedorsubstitutedforbytheCompany,over(y)theaggregate exercisepriceofsuchshares. 126 •2023ProxyStatement